Solana-based memecoin, Bonk (BONK), is seeing quite a healthy reversal. According to CoinGecko, the dog-themed memecoin has rallied 8.1% in the last 24 hours, 28.5% in the last week, 18.7% in the 14-day charts, and 49.9% since September 2024. Despite the rally, BONK’s price is down 3.4% over the previous month. BONK is currently outperforming industry giants, such as Bitcoin (BTC), Ethereum (ETH), XRP, BNB, etc.
Will BONK’s Price Rally Continue?
BONK’s latest price spike could be due to low inflation figures for the month of August. Although inflation numbers have risen, the chances of an interest rate cut this month are still high. Interest rate dips usually lead to investors taking on more risks. Memecoins carry some of the highest risks in the market, and may see continued rallies if the Federal Reserve rolls out a 25 basis point rate cut.
BONK’s current price spike could also be due to Solana (SOL) experiencing a price surge. Since BONK is based on the Solana blockchain, it may be gaining the benefits of SOL’s price rally.
Also Read: Solana Continues Big Rally: Is $300 A Possibility This Month?
According to CoinCodex analysts, BONK’s price rally may not continue over the coming days. The platform anticipates the memecoin to face a price correction, falling to $0.00001729 on Sept. 21. BONK’s price will dip by 31.66% if it falls to $0.00001729.
There is also a chance that BONK’s price will not face a correction as predicted by CoinCodex. An interest rate cut could trigger another market-wide rally. Moreover, Bitcoin (BTC) is seeing consistent ETF inflows. Both developments could send the original crypto to a new all-time high. BTC hitting a new peak may lead to other crypto assets following its lead. Such a scenario could cause BONK to continue its current upward trajectory. How the market behaves over the coming weeks is yet to be seen.
Credit: Source link
